The subject and other essential conditions of option agreements

Abstract

The paper is devoted to new contractual constructions in the Civil Code of the Russian Federation, i.e., the option to conclude a contract and an option agreement. The relevance of the study is determined by the high potential of option agreements, as well as by the possibility of their active use in civil circulation and, at the same time, the insufficient development of their concept and legal nature. The study has been performed with the aim of forming a comprehensive idea of the subject and other essential conditions of option agreements. The paper examines the possibility of choice in civil law. The interrelation of organizational contracts and option agreements has been analyzed. The essential conditions for option agreements have been defined. Based on the results of the study, the following conclusions have been drawn. Option agreements are not a kind of organizational agreements, since, as a rule, they are compensatory. The Civil Code of the Russian Federation does not contain certain requirements to the essential conditions of option agreements, except for the terms of the subject matter. However, for option contracts, in contrast to the option of contracting, it is suggested to include, in addition to the subject matter, the condition of contract term and option premium in the essential conditions. This is due to the double nature of the contract, which includes both the option and the underlying obligation under which the option contract is concluded. The conclusions are not final, and the problem under study will be the subject of further research. The results obtained are of great importance in the light of the reform of civil legislation of the Russian Federation.

Keywords

• option to conclude contract
• option agreement
• option premium
• freedom of choice
• organizational agreement